Serbia’s hydropower revitalization: Vlasinske System Set for Major Overhaul

After decades of discussion, Serbia is finally moving forward with the long-awaited reconstruction of the Vlasinske hydropower system, a project that will significantly enhance the country’s renewable energy capacity. Backed by €67 million in financing from the European Bank for Reconstruction and Development (EBRD) and a €15.4 million grant from the European Union (EU), the modernization project is set to begin in spring 2025, marking a major milestone in Serbia’s energy transition.

The Vlasinske system, which consists of four cascade hydropower plants, has been in operation for more than 70 years without significant upgrades. Built between 1946 and 1949, the system is a remarkable engineering feat, featuring two artificial lakes, Vlasina and Lisina, connected by nearly 60 kilometers of canals and tunnels that supply the plants with water. Despite its historical importance and the ability to power approximately 60,000 households, its aging infrastructure has made maintenance increasingly difficult and costly.

“This project has been a long time coming,” says Marko Filipović, an engineer at Serbia’s electric power company (EPS), who has been closely involved in the discussions surrounding Vlasinske’s redevelopment. “Over the years, EPS prioritized other projects, but the growing challenges of maintaining the system made it clear that full reconstruction was the best solution.”

A Major Investment in Serbia’s Renewable Energy Future

The modernization effort will replace essential equipment, including all turbines, generators, and hydromechanical systems, ensuring the plants can operate at full capacity with fewer repairs. The upgrades will also lead to a more balanced and stable electricity network while slightly increasing generation capacity.

Beyond these immediate benefits, the project is a key component of Serbia’s strategy to shift towards renewable energy. While hydropower accounts for nearly 30% of the country’s electricity production, Serbia remains heavily dependent on coal, which still generates around 60% of its power. Upgrading aging hydropower plants is a crucial step in reducing reliance on fossil fuels and extending the lifespan of Serbia’s clean energy infrastructure.

“Revitalizing these plants is crucial for Serbia’s energy future,” says Jovan Ilić, head of EPS’s Hydro and Renewables Division. “The Vlasinske system is our priority as the oldest plant of its kind, but modernization efforts won’t stop here. We are working on similar projects for Bistrica, Potpec, and Djerdap 2, with future plans to upgrade Uvac, Kokin Brod, and Pirot.”

A Broader Push for Renewable Energy

While hydropower remains a cornerstone of Serbia’s clean energy efforts, the country is also expanding its wind and solar energy capacity, which currently account for less than 3% of the national energy mix. Recognizing the limited potential for further hydropower expansion, Serbia has ramped up investments in alternative renewable sources, working closely with the EBRD, the EU, and international donors.

Since 2020, the EBRD has been assisting Serbia in designing renewable energy auctions, helping attract private investment into the sector. The first auction in 2023 was considered a success, leading to the announcement of a second auction in November 2024, signaling Serbia’s commitment to expanding its clean energy portfolio.

Despite the challenges ahead, Serbia’s ambitious energy transition plan reflects a clear commitment to a sustainable future. With engineers like Marko Filipović leading the charge, the revitalization of the Vlasinske hydropower system is not just an upgrade of an aging facility—it is a pivotal moment in Serbia’s clean energy transformation.